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Polyester, viscose and cotton market round up
Mar '10
Prices of polyester products continued to have minor fluctuations last week. PTA prices rose 36 Yuan per ton to 8,020 Yuan per ton on average for the week, average price of polyester staple fiber was 10,280 Yuan per ton and POY fell 85 Yuan per ton to 10,660 Yuan per ton.

Short-term prices of polyester products are expected to remain volatile movements, as they are waiting for improved sales of downstream products.

Prices in viscose chain rose across the board last week. Viscose staple fiber rose 100 Yuan to 20,300 Yuan per ton, rayon yarn price in downstream sector also rose 300 Yuan to 24,300 Yuan per ton; viscose filament yarn was steady at 34,900 Yuan per ton.

Cost pressures were passed to downstream sectors gradually, but price rise has not increased their profits, product price trend will depend on price movements of raw materials in the future; As application range of viscose filament is relatively narrow, therefore price increase is smaller then viscose staple fiber.

Spandex 40D price rose 1,000 Yuan to 5,700 Yuan per ton by the weekend. Good sales plus expected price rise portends good says for the spandex market. 40D price is expected to reach 6,000 Yuan per ton, judging current trend; meanwhile, significant rise in raw material prices is also likely to lap up profitability of spandex manufacturers.

Cotton prices accelerated last week. China Cotton index 328 quoted at 16,026 Yuan by the weekend, Cotlook Far East index increased by 1.12 cents / lb on average to 86.7 cents / lb. Cotton Yarn Index 40S rose 2,000 Yuan in a month to 23,500 Yuan / ton.

Chinese imports substantially increased, which fueled international cotton prices to some extent. Cotton prices are expected to rise further. 2010 profit margins of cotton spinning enterprises will not be better than in 2009, as labor and other costs are also fast rising.

Fibre2fashion News Desk - China

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